Starbucks Is An Entrepreneurial Company

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Starbucks was founded in 1985, it is one of the most successful coffee shop company in the global coffee market, with over 16,000 locations in 50 countries(Starbucks Annual Report, 2009). Starbucks’s core product is quality brewed coffee, along with coffee beans, tea, blended beverages, and a variety of food through Starbucks retail stores (Starbucks Annual Report, 2009). In 1998, Starbucks opened its first UK store in London. Starbucks has been expanding rapidly, with over 600 locations opened by 2009( Starbucks Annual Report, 2009). Starbucks is an entrepreneurial company. Howard Schultz, Starbucks founder has success his business, it can be found from several aspects of outstanding contribution( zeromillion.com). Starbucks makes…show more content…
Finally, the last part of the essay will introduce the strategies that Starbucks currently implements and provide recommendations that the company can follow to strengthen its internal management in order to manage, or overcome external challenges, by utilizing Marketing Mix model. PESTLE Analysis According to Johnson et al. (2008), Pestle model is an analysis framework which is applied to identify the important drivers of change in the strategic management. Framework comprises eight categories of factors surrounding a company, such as political, economic, socio-cultural, technological, legal and environmental factors. Political/ Legal factors Senter and Edmonds(2003) explained that political/ legal factors are about the degree of government interference in market economy and to what extent the country’s legal system will affect companies. UK has stable political and legal system, and Starbucks is seen as a favourable company to trade in the country. Economic factors These factors create significant impact on business operation, and are very much associated with consuming patterns and buying power( Senter and Edmonds, 2003). The UK customers have high buying power because they are willing to spend a bit more on Starbucks’s quality coffee. Socio-cultural factors Senter and Edmonds(2003) said that these factors influence people’s value, perceptions, preferences and behaviours in the society. In the UK, coffee drink culture presences over a long
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